Fundamentals for EUR/USD: neutral. "Draghi and other ECB members were unable to provide new information on policy tools they could use, so the EUR weakness (as markets priced in a deposit rate cut) was limited. This was followed by back-to-business for the EUR and its inverse correlation with risk appetite. As markets continue to be worried about global growth, especially in the emerging markets, the EUR will likely continue to see support. The stronger trade is to buy EUR/GBP as opposed to EUR/USD."
Technicals for EUR/USD: ranging within intermediate levels with breakdown expectations.
This pair is
on bearish ranging condition since end of March this year to be moved
within 1.1713 resistance and 1.0847 support level. If the price breaks
1.1016 support from above to below so the next bearish targets will be
1.0847 and 1.0461. By the way, if the price breaks 1.1713 resistance
from below to above so the next real target will be 1.2069 in this case.
The trend line of symmetric triangle pattern may be broken by the price
to below at 1.1016, and if so - we may see the good breakdown for this
week up to 1.0847 target. Thus, the expectation for bearish breakdown
for EUR/USD is very high and the breaking 1.1016 support level is the
most likely scenario for this week for example.
| Resistance | Support |
|---|---|
| 1.1713 | 1.1016 |
| 1.2069 | 1.0847 |
| N/A | 1.0461 |
